START-UP REGISTRATION SCHEME IN INDIA

Introduction

Startup Registration - Overview

India is witnessing a major transformation in entrepreneurship. From small-town innovators to global disruptors, startups are changing how India does business. However, many entrepreneurs struggle with complex compliance rules, funding challenges, and lack of mentorship. To empower these innovators, the Government of India launched the Startup India Scheme on 16 January 2016, under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

This initiative aims to build a strong ecosystem for innovation and entrepreneurship, enabling startups to grow, generate employment, and drive economic progress. It helps young entrepreneurs overcome hurdles and access funding, tax benefits, and expert mentorship. Today, Startup India has become a driving force behind India’s position as the third-largest startup ecosystem in the world.

What is the Startup India Scheme?

Startup India is a flagship initiative launched by the Government of India to promote entrepreneurship, innovation, and sustainable economic growth. The scheme provides startups with recognition, regulatory support, funding access, and tax benefits.

1

Official Recognition: Startups can register on the Startup India portal to receive government recognition, enabling access to various benefits and schemes.

2

Tax Benefits: Eligible startups can avail income tax exemptions and exemptions on capital gains, subject to prescribed conditions.

3

Ease of Compliance: The scheme offers self-certification under labor and environmental laws, reducing regulatory burden on startups.

4

Funding Support: Access to government-backed funds, incubators, accelerators, and investor networks to support business growth.

5

Market Access: Startups receive opportunities to participate in government tenders with relaxed eligibility norms.

By simplifying regulations and offering financial and institutional support, the Startup India Scheme helps early-stage businesses scale efficiently and compete in both domestic and global markets.

Objectives of Startup India

The Startup India Scheme was launched with a clear vision to transform India into a nation of job creators rather than job seekers. The key objectives of the initiative are outlined below:

1

Simplification and Handholding: To make it easier for startups to register, comply, and operate by reducing regulatory hurdles and providing structured government support.

2

Funding Support and Incentives: To ensure easy access to capital through government-backed funds, grants, and financial incentives.

3

Industry–Academia Collaboration: To promote innovation and research by encouraging collaboration between startups, universities, R&D institutions, and incubators.

4

Promoting Innovation and Entrepreneurship: To encourage individuals with innovative ideas to convert them into scalable and successful business ventures.

5

Ease of Doing Business: To create a startup-friendly ecosystem across all sectors by simplifying policies, compliance, and operational processes.

Eligibility Criteria for Startup India Registration

To register under the Startup India Scheme and obtain DPIIT recognition, the following eligibility conditions must be met:

1

The business must be registered as a Private Limited Company, Limited Liability Partnership (LLP), or Partnership Firm in India.

2

The startup must be less than 10 years old from the date of incorporation.

3

The annual turnover must not exceed ₹100 crore in any financial year.

4

The business must focus on innovation, development, or improvement of products, services, or processes.

5

The startup should not be formed by splitting or reconstructing an existing business.

6

It must obtain recognition from DPIIT to avail all Startup India benefits.

Note: DPIIT recognition can now be applied through the National Single Window System (NSWS), allowing one-stop access to multiple government approvals.

Benefits of Startup India Scheme

Recognized startups under the Startup India Scheme receive a wide range of benefits from the Government of India. These benefits are designed to promote innovation, reduce compliance burden, and provide financial and legal support.

Tax Benefits:

  • 100% income tax exemption for 3 consecutive years (within the first 10 years of incorporation) under Section 80-IAC of the Income Tax Act.
  • Capital gains exemption under Sections 54GB and 54EE.

Simplified Compliance:

  • Self-certification compliance under 6 labour laws and 3 environmental laws.
  • No government inspection for the first 3 years for self-certified startups.

Funding and Financial Assistance:

  • Access to the Fund of Funds (₹10,000 crore) managed by SIDBI.
  • Startup India Seed Fund Scheme (SISFS) provides:
    • Up to ₹20 lakh for prototype development
    • Up to ₹50 lakh for scaling or commercialization

Intellectual Property Support:

  • 80% rebate on patent filing fees
  • Fast-track patent examination
  • Legal and financial support through empaneled facilitators

Networking and Mentorship:

  • Access to national startup events, incubation programs, and mentorship by industry experts
  • Collaboration opportunities through Startup India Innovation Week and Global Startup Summit

Government Tender Benefits:

  • Relaxation in Earnest Money Deposit (EMD) and turnover requirements
  • Priority access to public procurement and government projects

Step-by-Step Registration Process

The Startup India registration process is simple and completely online. Below is a step-by-step guide to obtain DPIIT recognition and access Startup India benefits:

Step 1: Business Incorporation:Register your business as a Private Limited Company, LLP, or Partnership Firm through the Ministry of Corporate Affairs (MCA) portal. Obtain the Certificate of Incorporation, PAN, and TAN.

Step 2: Create an Account on Startup India Portal:Visit the official Startup India government website and click on “Register.” Enter your name, email ID, and business details to create your account.

Step 3: Apply for DPIIT Recognition:Log in and click on “Get Recognized by DPIIT.” Fill in the required details about your business, innovation, and future plans. Upload the necessary documents and submit the application.

Step 4: Verification:The Department for Promotion of Industry and Internal Trade (DPIIT) reviews your application and verifies eligibility.

Step 5: Receive DPIIT Certificate:Once approved, you will

Documents Required for Startup India Registration

To complete your Startup India registration, you’ll need the following documents:

1

Certificate of Incorporation or Partnership Deed

2

PAN Card of the business entity

3

Proof of business address (rent agreement or ownership proof)

4

List and details of directors or partners

5

A brief write-up about business innovation or uniqueness

6

Bank account details of the company

7

Website URL or pitch deck (if applicable)

8

Authorization letter (if consultant applies on your behalf)

9

Latest Update: Startups can now upload all documents directly through the NSWS portal, ensuring faster approval and real-time tracking

receive the DPIIT Recognition Certificate confirming your startup status. This certificate enables access to all Startup India scheme benefits.

DPIIT Recognition and Its Importance

The Department for Promotion of Industry and Internal Trade (DPIIT) recognition is crucial for every startup under this scheme. Once recognized, your business becomes eligible for government funding, tax exemptions, and legal benefits.

Key Advantages of DPIIT Recognition

1

3-year income tax holiday under Section 80-IAC

2

Easier access to funds through SIDBI and seed funding programs

3

Eligibility to participate in government tenders and procurement

4

Self-certification under labour and environmental laws

5

Fast-track IPR protection and financial incentives for patent filing

Tax Exemptions and Incentives for Startups

1

3-Year Tax Holiday: 100% exemption on income tax for three consecutive years (within the first ten years)

2

Capital Gains Exemption: Exemption for investors who reinvest capital gains in eligible startups

3

GST Exemption: Startups under the threshold limit are exempt from GST registration

4

Reduced Compliance Costs: Self-certification under major laws reduces compliance burden

5

Funding Incentives: Eligible startups can access the Startup India Seed Fund for early-stage support

Latest Updates in Startup India Scheme 2025

1

Integration with NSWS: Startups can now apply for multiple approvals (MSME, FSSAI, GST, etc.) through one dashboard

2

Faster DPIIT Recognition: Applications processed within 7 working days

3

GST Exemption: Startups under the threshold limit are exempt from GST registration

4

Green Startup Promotion: Priority funding for sustainable and clean technology startups

5

Women Entrepreneur Incentives: New funding programs for women-led startups with relaxed eligibility

6

One District One Startup (ODOS): State-level incubation support for startups in smaller districts

7

Startup India Innovation Week 2025: Collaborations with global accelerators for market expansion

CONCLUSION

The Startup India Scheme is a game-changer for entrepreneurs, opening doors to innovation, growth, and recognition. Startups can benefit from tax exemptions, funding access, and a supportive ecosystem to scale effectively.

At EVTL India, we specialize in Startup India Registration and DPIIT Recognition. We handle everything from eligibility assessment, document preparation, and application filing to follow-ups for approvals. We also keep you updated with the latest Startup India 2025 regulations and government schemes, ensuring your startup achieves recognition and success efficiently.

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